Trucking Insurance Coverages

Understanding Your Protection Options

Each coverage serves a specific purpose. We'll help you build the right package for your operation.

Auto Liability Insurance

What It Is

Auto liability insurance is required by the FMCSA for all commercial trucking operations. It protects you financially if you're at fault in an accident that causes bodily injury or property damage to others.

Why You Need It

  • Legal Requirement: FMCSA mandates minimum $750,000 liability coverage
  • Shipper/Broker Requirement: Most require $1M+ to haul freight
  • Financial Protection: Covers medical bills, repair costs, and legal fees for others
  • Business Protection: Prevents personal assets from being at risk

Coverage Limits

Minimum Required
  • $750,000 (standard)
  • $1,000,000 (recommended minimum)
Common Limits
  • $1,000,000
  • $2,000,000
  • $5,000,000+
What's Included
  • Bodily injury liability
  • Property damage liability
  • Legal defense costs
  • Settlements and judgments (up to policy limits)

Physical Damage Insurance

What It Is

Physical damage insurance protects your truck and trailer from damage due to accidents, theft, fire, vandalism, weather events, and other covered perils. This is separate from liability coverage and protects YOUR equipment.

Two Main Types

Collision Coverage

Covers damage to your truck from collisions with other vehicles or objects, regardless of who is at fault.

Comprehensive Coverage

Covers damage from non-collision events like theft, fire, vandalism, weather, falling objects, and animal strikes.

What's Covered

  • Truck (tractor)
  • Trailer(s)
  • Refrigeration units (if applicable)
  • Custom equipment and accessories

Deductibles

Typically range from $500 to $2,500. Higher deductibles mean lower premiums but more out-of-pocket costs if you have a claim.

Important Notes
  • Required if you have a loan or lease on your equipment
  • Optional for paid-off equipment, but highly recommended
  • Can be tailored to cover specific equipment only

Cargo Insurance

What It Is

Cargo insurance protects the freight you're hauling against damage, theft, or loss while in your possession. This coverage is typically required by shippers, brokers, and motor carriers.

Why You Need It

  • Contract Requirement: Most shippers and brokers require cargo coverage
  • Financial Protection: Covers the value of damaged or lost freight
  • Business Reputation: Shows you're a responsible carrier
  • Legal Compliance: Required for many types of freight

Coverage Limits

Limits typically range from $5,000 to $1,000,000+ depending on the type of freight you haul and shipper requirements.

Specialized Coverage Options

  • Reefer Breakdown: Covers spoilage due to refrigeration unit failure
  • Hazmat Cargo: Specialized coverage for hazardous materials
  • High-Value Cargo: Enhanced coverage for expensive items
  • Per Occurrence vs. Annual Aggregate: Different payout structures
Exclusions to Know

Standard cargo policies typically exclude certain items like jewelry, furs, precious metals, and certain high-risk commodities. Always review your policy carefully.

Bobtail / Non-Trucking Liability (NTL)

What It Is

Bobtail insurance (also called Non-Trucking Liability or NTL) covers your truck when you're NOT under dispatch or hauling freight for your motor carrier. This includes driving empty to pick up a load, returning home after delivery, or personal use.

When Primary Liability Doesn't Cover You

Your primary auto liability policy typically only covers you when you're under dispatch and hauling freight for your motor carrier. Bobtail coverage fills the gap when you're not covered by your primary policy.

Common Scenarios Covered

  • Driving empty to pick up a load
  • Returning home after delivery
  • Personal use of your truck (within policy limits)
  • Moving your truck for maintenance or repairs

Coverage Limits

Typically ranges from $100,000 to $1,000,000. Most lease agreements require at least $300,000 - $500,000 in bobtail coverage.

Who Needs It?
  • Leased owner-operators (usually required by lease agreement)
  • Owner-operators with their own authority
  • Drivers who use their truck for personal transportation

Trailer Interchange Insurance

What It Is

Trailer interchange insurance protects you when you're hauling a trailer that you don't own, as outlined in a trailer interchange agreement. This coverage is essential when you drop your trailer and pick up another at a terminal or shipper location.

Why You Need It

  • Agreement Requirement: Required by most trailer interchange agreements
  • Financial Protection: Covers damage to non-owned trailers in your possession
  • Business Continuity: Allows you to participate in trailer pool programs

What's Covered

  • Physical damage to non-owned trailers
  • Theft of non-owned trailers
  • Damage while trailer is in your possession or control
  • Coverage typically follows the trailer, not the truck

Coverage Limits

Limits should match the value of the trailers you typically haul. Common limits range from $25,000 to $100,000+ per trailer.

Important Considerations
  • Review your trailer interchange agreements carefully
  • Understand who is responsible for what types of damage
  • Know the reporting requirements if damage occurs
  • Keep documentation of trailer condition when you receive it

General Liability Insurance

What It Is

General liability insurance protects your trucking business from non-auto related claims. This includes injuries to customers or visitors at your business location, damage to a shipper's property, and certain types of lawsuits.

What's Covered

  • Bodily Injury: Injuries to third parties at your business location
  • Property Damage: Damage to someone else's property
  • Personal & Advertising Injury: Libel, slander, copyright infringement
  • Medical Payments: Minor injury claims regardless of fault

Common Scenarios

  • A customer slips and falls at your office or terminal
  • Your employee accidentally damages a shipper's dock or equipment
  • Someone sues your business for libel or slander
  • A visitor's property is damaged while on your premises

Coverage Limits

Typically ranges from $300,000 to $2,000,000 per occurrence. Higher limits available for larger operations.

Who Needs It?
  • Owner-operators with a business office or terminal
  • Fleet operators with physical locations
  • Any trucking business that interacts with customers on-site
  • Businesses that want comprehensive protection beyond auto coverage

Ready to Build Your Coverage Package?

Every trucking operation is unique. Let us help you select the right combination of coverages for your specific needs.